Heading to effectiveness
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#40April 2014

Heading to effectiveness

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— In the recent years ROSATOM has paid much attention to effectiveness. To what extent is it the compelling issue for the company?

— We will be able to retain and expand TVEL’s footprint in the world market only having become effective in all senses. This was exactly what the “New Look” program was targeted to. We implemented this program at our facilities in 2007-2012. By the way, over that time the overall economic effect of the program implementation reached RUB 35 billion. But today also we continue the optimization process; we continuously work to improve effectiveness. All these produce positive effect on labor efficiency. Over the recent five years this indicator has grown by nearly 3.5 times. As a consequence, salaries of the employees grow.

— Speaking about the development of the sectoral science in general, where should the new products marketing be concentrated? Scientists often say that this activity is not their core business.

— In my view, it is the scientist who should do the primary marketing of high-technology products. Because R&D in essence is the marketing of the product or future business, which then will yield a result. I can give you an example. The latest contracts TVEL concluded with China took place specifically owing to science. We showed them new products with unique consumer properties, which had been developed by scientists and had references in this country. The initial negotiations were led by Petr Lavrenuyk, senior vice president for science and technology. Then, specialists responsible for the international business came in. As the result, we managed to sign the contract for supply of nuclear fuel TVS-2M for Tianwan Units 1&2 instead of UTVS fuel made at the Chinese fuel fabrication plant. We also agreed on TVS-2 fuel supplies for initial core charges and 6 additional reloads for Units 3&4 of that nuclear power plant. We also signed a document package on supplies of component parts to fabricate fuel for all reactors of that NPP at the Yibin Nuclear Fuel Element Plant, and made a record of the possibility to supply TVS-Kvadrat fuel for Chinese NPPs.

— TVEL’s companies have produced non-nuclear items for several years. Do you manage to find new markets?

— On the whole, the non-nuclear product development dynamics is positive. In 2013 sales of products under innovative non-nuclear projects reached RUB 4.79 billion, up 18% from the 2012 indicators. At that, last year we invested over one billion rubles in this work. At the same time, I want to note that the development of non-nuclear businesses is not an end in itself. Our efforts are aimed at securing full work load of our productions to reduce cash cost of the core products through a larger scale of production. The second objective, which is not less important, is creation of new jobs.

— The Fuel Company’s managers composition has changed greatly over the recent years. They say, specialists are careering quickly in your company. What is the trick?

— In my view, this is due to objective causes. The Fuel Company operates in the conditions of hard competition in the world market. It is important for us to be always the best to win this struggle. Naturally, specialists manifest their best qualities faster under pressure of these challenges. Our way is to make-up the staff with our own specialists. There is one factor, which is of great help to us. This is the ROSATOM Production System. We have implemented it for several years already and I am glad that RPS gradually becomes the all-embracing culture. This system targets not only to cost reductions and production efficiency improvement; it becomes the general labor culture for us indeed. It has become easier to identify the best ones as it is implemented at ever broader scale. Earlier, when at plants and combines I was reported mainly by directors, their deputies or shop supervisors, now I often meet with small group leaders and youth.